Below is a graph of the natural gas inventory in the US as published by the US Energy Information Administration. The grey band shows the maximum and the minimum level of inventory in the past five year period and the light blue line shows the current level of inventory of natural gas.

There are two seasons with regards to natural gas. In the warmer months from April to

The winter of 2013 was one of the coldest winters that people have experienced in recent times. This cold wave ensured that people stayed indoors and turned on their heaters in full swing. This might have impacted much of the economy on a larger scale and we shall soon find out as the earnings season kicks in. But this winter has definitely taken a huge toll on the natural gas inventory which has fallen to the lowest level in a decade.

Below is a graph of the natural gas inventory in the US as published by the US Energy Information Administration. The grey band shows the maximum and the minimum level of inventory in the past five year period and the light blue line shows the current level of inventory of natural gas.

There are two seasons with regards to natural gas. In the warmer months from April to

Ethan Allen Interiors (NYSE:ETH) is a leading manufacturer and retailer of home furnishings and accessories which it retails through its network of 298 design centers in the United States and abroad. The company operates 147 of its design centers while 151 are owned by independent retailers. The company has significant presence in China with 70 design centers, 11 in rest of Asia and 3 in Middle East and Canada. Below is a geographical distribution of Ethan Allen stores in the US.

Ethan Allen Interiors (NYSE:ETH) is a leading manufacturer and retailer of home furnishings and accessories which it retails through its network of 298 design centers in the United States and abroad. The company operates 147 of its design centers while 151 are owned by independent retailers. The company has significant presence in China with 70 design centers, 11 in rest of Asia and 3 in Middle East and Canada. Below is a geographical distribution of Ethan Allen stores in the US.

No of stores

State

21

CA

14

NY, FL

13

TX

9

PA, NJ, MI

7

CT, IL, MA, NC, OH

6 or 5 or 4

AZ, CO, GA, MD, SC, VA

3

WI, WA, TN, OR, NH, MN, LA, KY, IA, IN, OK

2

NV, MO, AL

1

VT, ID, KS, ME, MS, MT, NE, NM, RI, SD, UT, VT

This is important because recovery in

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HVTPIRWSMETHShrideep MurthyHelmerich & Payne: Going Strong, But Poised For A Breatherhttp://seekingalpha.com/article/1303131-helmerich-and-payne-going-strong-but-poised-for-a-breather?source=feed_author_shrideep_murthy
1303131
In my earlier report in June 2012 I did a preliminary analysis of Helmerich & Payne (NYSE:HP) which was then trading at around $45. The stock almost touched $70 in mid February and is now hovering around the $60 mark. In the three quarters since the earlier report the fundamentals of the company have improved and the higher stock price is a testament to that.

In this report we are going to review our investment while analyzing the price behavior of the stock and reviewing the fundamentals.

The following graph shows the price behavior of the stock since 2000:

(click to enlarge)

Yahoo Finance

The stock price was near the $70 mark three times in the past. We are going to compare and contrast the price of the stock with the active rig count published by BHI and the earnings per share.

In my earlier report in June 2012 I did a preliminary analysis of Helmerich & Payne (NYSE:HP) which was then trading at around $45. The stock almost touched $70 in mid February and is now hovering around the $60 mark. In the three quarters since the earlier report the fundamentals of the company have improved and the higher stock price is a testament to that.

In this report we are going to review our investment while analyzing the price behavior of the stock and reviewing the fundamentals.

The following graph shows the price behavior of the stock since 2000:

(click to enlarge)

Yahoo Finance

The stock price was near the $70 mark three times in the past. We are going to compare and contrast the price of the stock with the active rig count published by BHI and the earnings per share.

Date when stock price was close to $70

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HPShrideep MurthyVail Resorts: Way To Go Despite Profit Warninghttp://seekingalpha.com/article/1138561-vail-resorts-way-to-go-despite-profit-warning?source=feed_author_shrideep_murthy
1138561
In a release issued on January 15, 2013, Vail Resorts (NYSE:MTN) scaled down its full-year guidance due to poor weather conditions at its Colorado Resorts. It now estimates net income to be in a range of $39 million to $49 million in fiscal 2013, which will be more than double last year's $16 million. At the current price of $52 the stock boasts a trailing 12 month PE of 195 and with its current downgrade it may be time to take a complete relook at the company and its fundamentals.

Through its portfolio of seven resorts and a collection of luxury hotels and restaurants Vail resorts seeks to provide a comprehensive vacation experience to a traveler. It generates 75% of its revenue from the Mountain segment, 21% from the lodging and dining services and the rest from developing real estate around the resorts. In short, the entire business model is

In a release issued on January 15, 2013, Vail Resorts (NYSE:MTN) scaled down its full-year guidance due to poor weather conditions at its Colorado Resorts. It now estimates net income to be in a range of $39 million to $49 million in fiscal 2013, which will be more than double last year's $16 million. At the current price of $52 the stock boasts a trailing 12 month PE of 195 and with its current downgrade it may be time to take a complete relook at the company and its fundamentals.

Through its portfolio of seven resorts and a collection of luxury hotels and restaurants Vail resorts seeks to provide a comprehensive vacation experience to a traveler. It generates 75% of its revenue from the Mountain segment, 21% from the lodging and dining services and the rest from developing real estate around the resorts. In short, the entire business model is

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MTNShrideep MurthyAT&T: Valuing The Stock On The Basis Of Its Dividendshttp://seekingalpha.com/article/1123931-at-and-t-valuing-the-stock-on-the-basis-of-its-dividends?source=feed_author_shrideep_murthy
1123931
A lot of people tend to look at companies like AT&T (NYSE:T) as pure dividend plays, but a look at the stock chart since 2009 tells us that the story is not just about dividends, but about price appreciation also.

(click to enlarge)

Source: Yahoo Finance

AT&T is the world's largest telecommunications company with revenues of $126 billion and net profit of $3.9 billion in 2011. It generates 81% of its revenues from wireless telecommunication and Data/Managed services. Wireless revenues grew by 6.6% in Q3, 2012 and wireless service revenues were up by 4.5% in the same period. It recorded the strongest growth in post-paid wireless subscriber ARPU (average revenue per user) in six quarters and now stands at $65.

The company generated $11.5 billion in operating cash flow in Q3, 2012 and a record $6.5 billion of free cash flow. To utilize this cash in an efficient manner,

A lot of people tend to look at companies like AT&T (NYSE:T) as pure dividend plays, but a look at the stock chart since 2009 tells us that the story is not just about dividends, but about price appreciation also.

(click to enlarge)

Source: Yahoo Finance

AT&T is the world's largest telecommunications company with revenues of $126 billion and net profit of $3.9 billion in 2011. It generates 81% of its revenues from wireless telecommunication and Data/Managed services. Wireless revenues grew by 6.6% in Q3, 2012 and wireless service revenues were up by 4.5% in the same period. It recorded the strongest growth in post-paid wireless subscriber ARPU (average revenue per user) in six quarters and now stands at $65.

The company generated $11.5 billion in operating cash flow in Q3, 2012 and a record $6.5 billion of free cash flow. To utilize this cash in an efficient manner,

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TShrideep MurthyAmazon.com - Less Than Ordinary Business, But Extraordinary Valuationshttp://seekingalpha.com/article/1100211-amazon-com-less-than-ordinary-business-but-extraordinary-valuations?source=feed_author_shrideep_murthy
1100211
In 1997 he spun a tale. It's all about the long term, he said. The markets bought it and kept buying it for the next 15 years. The stock kept rallying all these years and is up 250% since the bull market peak. The top line of the company has been parabolic, but the bottom line has been almost flat. Yes, I am talking about Jeff Bezos and Amazon (NASDAQ:AMZN).

Amazon stock returned 38% last year and investors should not be complaining. Of course they are not, because the going is good and the stock hit its all time high yesterday. Questions will arise when the boat hits rough waters. But I want to raise a few questions now, not about the stock, but about the business in general.

Amazon is a unique business in a lot of respects. The revenues have grown every single year at a 20%-30% clip

In 1997 he spun a tale. It's all about the long term, he said. The markets bought it and kept buying it for the next 15 years. The stock kept rallying all these years and is up 250% since the bull market peak. The top line of the company has been parabolic, but the bottom line has been almost flat. Yes, I am talking about Jeff Bezos and Amazon (NASDAQ:AMZN).

Amazon stock returned 38% last year and investors should not be complaining. Of course they are not, because the going is good and the stock hit its all time high yesterday. Questions will arise when the boat hits rough waters. But I want to raise a few questions now, not about the stock, but about the business in general.

Amazon is a unique business in a lot of respects. The revenues have grown every single year at a 20%-30% clip

Complete Story »]]>
AMZNShrideep MurthyThe Hidden Truth Behind IBM's Stellar Return On Equity And Estimating Its Intrinsic Valuehttp://seekingalpha.com/article/1081771-the-hidden-truth-behind-ibms-stellar-return-on-equity-and-estimating-its-intrinsic-value?source=feed_author_shrideep_murthy
1081771
When one happens to casually scroll through IBM's (NYSE:IBM) key statistics on financial websites like Yahoo Finance the number that pops out immediately is its stellar Return on Equity. For 2011, IBM's RoE stood at 73%, which is mind boggling at first sight. When a company like IBM posts a RoE number that is so high it warrants a deeper dive into understanding how exactly has the company been able to achieve this growth. After all, a Return on Equity is considered by many as the ultimate measure of a company's profitability.

In this article we are going to find out IBM's real RoE and then use a valuation technique to estimate the actual value of the stock.

IBM had a Return on Common Equity of 15% in 2002 which has increased almost every single year to 73% in 2011. The chart below tells the story better:

When one happens to casually scroll through IBM's (NYSE:IBM) key statistics on financial websites like Yahoo Finance the number that pops out immediately is its stellar Return on Equity. For 2011, IBM's RoE stood at 73%, which is mind boggling at first sight. When a company like IBM posts a RoE number that is so high it warrants a deeper dive into understanding how exactly has the company been able to achieve this growth. After all, a Return on Equity is considered by many as the ultimate measure of a company's profitability.

In this article we are going to find out IBM's real RoE and then use a valuation technique to estimate the actual value of the stock.

IBM had a Return on Common Equity of 15% in 2002 which has increased almost every single year to 73% in 2011. The chart below tells the story better:

Return on Equity

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IBMShrideep MurthyCisco: Everything Is Priced Inhttp://seekingalpha.com/article/1062931-cisco-everything-is-priced-in?source=feed_author_shrideep_murthy
1062931
With $46 billion in revenue Cisco (NASDAQ:CSCO) is the unquestioned giant in the communications and networking industry. For the last three years it started reporting revenues for its data center business under a separate segment. In FY2010 its revenues from data centers were $196 million which ballooned to $1.3 billion in FY2012. Emerging fields like big data are a part of the data center business and a lot of companies are adopting these technologies to increase scalability and profitability.

With $46 billion in revenue Cisco (NASDAQ:CSCO) is the unquestioned giant in the communications and networking industry. For the last three years it started reporting revenues for its data center business under a separate segment. In FY2010 its revenues from data centers were $196 million which ballooned to $1.3 billion in FY2012. Emerging fields like big data are a part of the data center business and a lot of companies are adopting these technologies to increase scalability and profitability.

Below are the segment wise revenues for Cisco

Field

FY 2010

FY 2011

FY 2012

Total Revenue

40,040

43,218

46,061

Products

32,420

34,526

36,326

Switches

14,074

14,177

14,531

Collaboration

2,981

4,072

4,139

Service Provider Video

3,294

3,515

3,858

Wireless

1,134

1,400

1,699

Security

1,302

1,191

1,349

Data Center

196

696

1,298

Routers

7,868

8,186

8,425

Other

1,571

1,289

1,027

Service

7,620

8,692

9,735

In millions, all data taken from Cisco's 10

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CSCOShrideep MurthyDiscounted Cash Flow Analysis: Microsoft Is A Buy In All Scenarioshttp://seekingalpha.com/article/1046711-discounted-cash-flow-analysis-microsoft-is-a-buy-in-all-scenarios?source=feed_author_shrideep_murthy
1046711
Scrolling through the articles available on Microsoft (NASDAQ:MSFT), one is amazed at the amount of analysis available on Seeking Alpha. Microsoft has a huge array of products and services and there are several articles focusing on those items, comparing them to competitor's products or making a historical comparison. What I found missing among them was an article focusing purely on the financial valuation of the business.

The fact of the matter is that Microsoft still has a significant hold on a number of franchises, and a competitor cannot affect its revenue streams over the medium term by more than a few percentage points. Hence, it might make sense to apply a valuation model like discounted cash flow (DCF) to Microsoft.

For curious investors, I shall outline briefly the mechanics of the DCF method that we are going to apply. While explaining his investment strategy, Warren Buffett has always mentioned free

Scrolling through the articles available on Microsoft (NASDAQ:MSFT), one is amazed at the amount of analysis available on Seeking Alpha. Microsoft has a huge array of products and services and there are several articles focusing on those items, comparing them to competitor's products or making a historical comparison. What I found missing among them was an article focusing purely on the financial valuation of the business.

The fact of the matter is that Microsoft still has a significant hold on a number of franchises, and a competitor cannot affect its revenue streams over the medium term by more than a few percentage points. Hence, it might make sense to apply a valuation model like discounted cash flow (DCF) to Microsoft.

For curious investors, I shall outline briefly the mechanics of the DCF method that we are going to apply. While explaining his investment strategy, Warren Buffett has always mentioned free

Complete Story »]]>
MSFTShrideep MurthyBioassays And Drug Development: Now The National Institute Of Health Becomes An Activisthttp://seekingalpha.com/article/829661-bioassays-and-drug-development-now-the-national-institute-of-health-becomes-an-activist?source=feed_author_shrideep_murthy
829661
The process of finding a new cure for a disease is long and expensive, costing millions of dollars with no guarantee of success. Scientists begin with as many as 10,000 compounds and test them for about seven years. The search then proceeds to the clinical trial stage, which goes on for another six years. One of the possible outcomes is that the new drug does have the desired therapeutic effect along with undesired cell toxicity. Such a compound then has to be abandoned. But what if such undesired toxicity could be predicted much earlier in the drug development process?

This is precisely why a bioassay is used. A bioassay is an experimental test performed on a biological system to determine the effect and efficacy of a new drug or molecule. Though a wide variety of bioassays exist they can be classified as In-vivo techniques and In-vitro techniques. In-vivo

The process of finding a new cure for a disease is long and expensive, costing millions of dollars with no guarantee of success. Scientists begin with as many as 10,000 compounds and test them for about seven years. The search then proceeds to the clinical trial stage, which goes on for another six years. One of the possible outcomes is that the new drug does have the desired therapeutic effect along with undesired cell toxicity. Such a compound then has to be abandoned. But what if such undesired toxicity could be predicted much earlier in the drug development process?

This is precisely why a bioassay is used. A bioassay is an experimental test performed on a biological system to determine the effect and efficacy of a new drug or molecule. Though a wide variety of bioassays exist they can be classified as In-vivo techniques and In-vitro techniques. In-vivo

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CRLVSTAShrideep MurthyParkinson's Disease: 3 Different Firms, 3 Novel Approacheshttp://seekingalpha.com/article/812171-parkinsons-disease-3-different-firms-3-novel-approaches?source=feed_author_shrideep_murthy
812171
The Parkinson's Disease Foundation estimates that as many as one million Americans suffer from Parkinson's disease and 60,000 new patients are diagnosed each year. Between seven to ten million people are affected by Parkinson's around the world. Medication costs per person are believed to be around $2,500 each year and the total economic impact is estimated to be around $25 billion in the US alone. Boxing legend Muhammed Ali established the Muhammed Ali Parkinson Center for diagnosis, therapy and research and has raised millions of dollars to find a preventive cure for the dreaded disease. There is immense scope for a company that is able to find a preventive treatment for Parkinson's which is encouraging many small and large bio-tech firms to invest in research and development.

A brief overview

Certain neurons in the part of the human brain called substantia nigra are responsible for producing a chemical called dopamine

The Parkinson's Disease Foundation estimates that as many as one million Americans suffer from Parkinson's disease and 60,000 new patients are diagnosed each year. Between seven to ten million people are affected by Parkinson's around the world. Medication costs per person are believed to be around $2,500 each year and the total economic impact is estimated to be around $25 billion in the US alone. Boxing legend Muhammed Ali established the Muhammed Ali Parkinson Center for diagnosis, therapy and research and has raised millions of dollars to find a preventive cure for the dreaded disease. There is immense scope for a company that is able to find a preventive treatment for Parkinson's which is encouraging many small and large bio-tech firms to invest in research and development.

A brief overview

Certain neurons in the part of the human brain called substantia nigra are responsible for producing a chemical called dopamine

Complete Story »]]>
FOLDIPXLISCOShrideep MurthyBeware Of Other Knights Lurking In Your Portfoliohttp://seekingalpha.com/article/789701-beware-of-other-knights-lurking-in-your-portfolio?source=feed_author_shrideep_murthy
789701
In an interview with CNBC on Monday, Thomas Joyce, CEO of Knight Capital (NYSE:KCG) laid out the reason for the glitch that took the firm almost to bankruptcy courts. "It was a very simple breakdown, a large breakdown but a very simple breakdown. It was an issue with trading technology", were his exact words. A simple breakdown that cost the company approximately $440 million dollars, a number equivalent to exactly four times its net income for 2011.

The company then raised money and salvaged itself but it is the investors who took the big hit on the valuation front and have little to cheer about. The stock is down almost 70% from its pre-glitch price and it is unlikely that it will recover soon. The overhang of class action lawsuits and other penalties from the SEC will jeopardize future profits.

In an interview with CNBC on Monday, Thomas Joyce, CEO of Knight Capital (NYSE:KCG) laid out the reason for the glitch that took the firm almost to bankruptcy courts. "It was a very simple breakdown, a large breakdown but a very simple breakdown. It was an issue with trading technology", were his exact words. A simple breakdown that cost the company approximately $440 million dollars, a number equivalent to exactly four times its net income for 2011.

The company then raised money and salvaged itself but it is the investors who took the big hit on the valuation front and have little to cheer about. The stock is down almost 70% from its pre-glitch price and it is unlikely that it will recover soon. The overhang of class action lawsuits and other penalties from the SEC will jeopardize future profits.

When computers made their foray in trading and market making

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GSITGJPMKCGIBKRShrideep MurthyComing Deluge Of Facebook Stock Unlikely To Sink It Furtherhttp://seekingalpha.com/article/787981-coming-deluge-of-facebook-stock-unlikely-to-sink-it-further?source=feed_author_shrideep_murthy
787981
It is close to three months since Facebook (NASDAQ:FB) went public, and investors are definitely searching for the dislike button, as the stock performance has been anything but likeable. Thankfully, all public investors have had an option to exit the stock if and when they wanted to, unlike the early buyers who clamored to buy into the Facebook pie before its IPO. And quite a few of them don't have an option to exit until the lock-up period expires.

On August 16, holders of 268 million shares will have an option to exit or keep holding on to Facebook as the first lock-up period expires. Over the course of the next year, more than 1.9 billion shares will be unlocked, adding to the current floating stock. Here is a table that outlines the lock-up period:

It is close to three months since Facebook (NASDAQ:FB) went public, and investors are definitely searching for the dislike button, as the stock performance has been anything but likeable. Thankfully, all public investors have had an option to exit the stock if and when they wanted to, unlike the early buyers who clamored to buy into the Facebook pie before its IPO. And quite a few of them don't have an option to exit until the lock-up period expires.

On August 16, holders of 268 million shares will have an option to exit or keep holding on to Facebook as the first lock-up period expires. Over the course of the next year, more than 1.9 billion shares will be unlocked, adding to the current floating stock. Here is a table that outlines the lock-up period:

Date

Shares Being Unlocked

May 17, 2012

Filing of prospectus

August 16, 2012

268,113,248

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FBShrideep MurthyNatural Gas Prices To Be Significantly Higher Closer To Winterhttp://seekingalpha.com/article/763881-natural-gas-prices-to-be-significantly-higher-closer-to-winter?source=feed_author_shrideep_murthy
763881
Natural Gas (NYSEARCA:UNG) prices have fallen from $4.5 (Henry hub spot price) last year to $1.82 in April, and then jumped to above $3 just when everyone thought prices were heading to zero. Volatility brings with itself great trading opportunities, which is why I am going to try and develop a model to estimate what natural gas prices might be during winter this year.

The basic hypothesis is this: The gas prices in the winter months will depend on how hot/cold the winter is, the available inventory of natural gas, and the demand for other uses. Since the demand for other uses is more or less constant on a shorter time frame, this variable can be ignored in this analysis. I am publishing the details of my analysis for curious readers as well as for people to comment and critique on it. Investors who do not want to get into

Natural Gas (NYSEARCA:UNG) prices have fallen from $4.5 (Henry hub spot price) last year to $1.82 in April, and then jumped to above $3 just when everyone thought prices were heading to zero. Volatility brings with itself great trading opportunities, which is why I am going to try and develop a model to estimate what natural gas prices might be during winter this year.

The basic hypothesis is this: The gas prices in the winter months will depend on how hot/cold the winter is, the available inventory of natural gas, and the demand for other uses. Since the demand for other uses is more or less constant on a shorter time frame, this variable can be ignored in this analysis. I am publishing the details of my analysis for curious readers as well as for people to comment and critique on it. Investors who do not want to get into

Complete Story »]]>
APCBCFBPCHKCLRCOPDNRDVNECAEIAEOGPXDRRCUNGUPLXOMShrideep MurthyDelving Deeper Into The Ackman - Procter & Gamble Sagahttp://seekingalpha.com/article/742041-delving-deeper-into-the-ackman-procter-and-gamble-saga?source=feed_author_shrideep_murthy
742041
As William Ackman bought stock in Procter & Gamble (NYSE:PG), speculation is ripe about the kind of changes he wants at the management level. The CEO and the Board of Directors have been Mr. Ackman's favorite targets in each of his previous activist interventions. So it is not unlikely for the analysts and observers to speculate on the possible exit of Bob McDonald, Chairman of the Board, President and Chief Executive Officer of P&G. The P&G board moved swiftly on July 18th, to quell down this speculation and issued the following statement:

In response to recent erroneous media reports, the independent directors of the Board of The Procter & Gamble Company make the following statement:

The Board is overseeing a plan to return P&G results to levels that produce the best long term value for shareholders; unanimously supports the plan and Chief Executive Officer, Bob McDonald, as he leads

As William Ackman bought stock in Procter & Gamble (NYSE:PG), speculation is ripe about the kind of changes he wants at the management level. The CEO and the Board of Directors have been Mr. Ackman's favorite targets in each of his previous activist interventions. So it is not unlikely for the analysts and observers to speculate on the possible exit of Bob McDonald, Chairman of the Board, President and Chief Executive Officer of P&G. The P&G board moved swiftly on July 18th, to quell down this speculation and issued the following statement:

In response to recent erroneous media reports, the independent directors of the Board of The Procter & Gamble Company make the following statement:

The Board is overseeing a plan to return P&G results to levels that produce the best long term value for shareholders; unanimously supports the plan and Chief Executive Officer, Bob McDonald, as he leads

Complete Story »]]>
PGShrideep MurthyProcter & Gamble: Ackman Buys Stock - History Shows Possible 30% Return In 6 Monthshttp://seekingalpha.com/article/727901-procter-and-gamble-ackman-buys-stock-history-shows-possible-30-percent-return-in-6-months?source=feed_author_shrideep_murthy
727901
The press is abuzz about Mr. William Ackman buying stock in Procter and Gamble (NYSE:PG). Speculation is ripe about the kind of changes Mr. Ackman will try to bring about in the management team, possibly showing CEO Robert McDonald the door.

As a minority shareholder in P&G what should you do? Should you hold on to your shares, buy more or initiate a new position? Let us have a look at what has happened to similar high profile investments that Mr. Ackman made in other companies and the returns shareholder have enjoyed. The table below tells the story:

The press is abuzz about Mr. William Ackman buying stock in Procter and Gamble (NYSE:PG). Speculation is ripe about the kind of changes Mr. Ackman will try to bring about in the management team, possibly showing CEO Robert McDonald the door.

As a minority shareholder in P&G what should you do? Should you hold on to your shares, buy more or initiate a new position? Let us have a look at what has happened to similar high profile investments that Mr. Ackman made in other companies and the returns shareholder have enjoyed. The table below tells the story:

Complete Story »]]>
BEAMCPJCPTGTPGShrideep MurthyNabors Issues A Profit Warning, Is It Time To Exit?http://seekingalpha.com/article/726911-nabors-issues-a-profit-warning-is-it-time-to-exit?source=feed_author_shrideep_murthy
726911
Nabors Industries (NYSE:NBR) issued a profit warning today and said that it expects operating income for Q2-2012 to be in the range of $220-230 million. This figure is significantly less than $321 million that Nabors had delivered in the first quarter.

The company attributed the lower earnings to lower than expected performance of the pressure pumping division. Nabors categorizes its operations into contract drilling, pressure pumping, and oil and gas exploration (click here to read a complete analysis of the Nabors). The table below shows the revenue mix for the company.

2011(%)

Operating Revenue

100.00

Contract Drilling

68.96

Pressure Pumping

19.48

Oil and Gas

0.94

Other Operating Segments

10.62

Revenue from the pressure pumping division had grown from $321 million in 2010 to $1.2 billion in 2011. The company attributed this poor performance to, "the increasingly competitive spot market in pressure pumping where pricing and utilization continued to deteriorate

Nabors Industries (NYSE:NBR) issued a profit warning today and said that it expects operating income for Q2-2012 to be in the range of $220-230 million. This figure is significantly less than $321 million that Nabors had delivered in the first quarter.

The company attributed the lower earnings to lower than expected performance of the pressure pumping division. Nabors categorizes its operations into contract drilling, pressure pumping, and oil and gas exploration (click here to read a complete analysis of the Nabors). The table below shows the revenue mix for the company.

2011(%)

Operating Revenue

100.00

Contract Drilling

68.96

Pressure Pumping

19.48

Oil and Gas

0.94

Other Operating Segments

10.62

Revenue from the pressure pumping division had grown from $321 million in 2010 to $1.2 billion in 2011. The company attributed this poor performance to, "the increasingly competitive spot market in pressure pumping where pricing and utilization continued to deteriorate

Complete Story »]]>
PTENNBRShrideep MurthyHDFC Bank Clocks Strong Q1 Performancehttp://seekingalpha.com/article/722511-hdfc-bank-clocks-strong-q1-performance?source=feed_author_shrideep_murthy
722511HDFC Bank Limited (NYSE:HDB) reported first-quarter earnings for fiscal year 2012-2013 on July 13. Total income for the quarter rose to INR95.368 billion from INR70.98 billion, up 34% year-on-year. Net Interest Income for the quarter was INR34.84 billion, up 22%.

HDFC Bank is India's second largest private sector lender with a balance sheet of INR3,600 billion. It has a presence in almost 1,400 cities with more than 2,500 branches and 9,000 ATM's. Here is a snapshot of the quarterly performance:

Quarter ended 6/30/2012

Quarter ended 6/30/2011

YoY growth

(%)

Total Income

95.37

70.98

34.36

Net interest income plus other income

50.13

39.68

26.34

Net interest income

34.84

28.48

22.33

In billion rupees

The Macro outlook

Since 2011, the Indian economy (India Fund, Inc.: IFN) has been facing several headwinds as growth has slowed, inflation refuses to moderate, and the currency has depreciated considerably. GDP growth for the fourth

HDFC Bank Limited (NYSE:HDB) reported first-quarter earnings for fiscal year 2012-2013 on July 13. Total income for the quarter rose to INR95.368 billion from INR70.98 billion, up 34% year-on-year. Net Interest Income for the quarter was INR34.84 billion, up 22%.

HDFC Bank is India's second largest private sector lender with a balance sheet of INR3,600 billion. It has a presence in almost 1,400 cities with more than 2,500 branches and 9,000 ATM's. Here is a snapshot of the quarterly performance:

Quarter ended 6/30/2012

Quarter ended 6/30/2011

YoY growth

(%)

Total Income

95.37

70.98

34.36

Net interest income plus other income

50.13

39.68

26.34

Net interest income

34.84

28.48

22.33

In billion rupees

The Macro outlook

Since 2011, the Indian economy (India Fund, Inc.: IFN) has been facing several headwinds as growth has slowed, inflation refuses to moderate, and the currency has depreciated considerably. GDP growth for the fourth

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IBNIFNHDBShrideep MurthyIs Infosys Technologies Losing Its Charm?http://seekingalpha.com/article/718771-is-infosys-technologies-losing-its-charm?source=feed_author_shrideep_murthy
718771
Infosys Technologies (NYSE:INFY) took a beating on the bourses Thursday after the company reported lackluster earnings that missed its own forecast.

The stock ended down 11% for the day on NASDAQ as revenues for the quarter ended June 30 were down 1% on a sequential basis. What spooked the markets was continued muted guidance from the management which reset its forecast for year-on-year growth to 5% from the earlier expected 8-10%.

Q1-2012

Q4-2011

Revenues

1,752

1,771

Cost of sales

1,059

1,041

Gross profit margin

39.55

40.58

Net profit

416

463

Net profit margin

23.74

26.43

Diluted EPS

0.73

0.81

In US$ million, except per EPS.

Infosys has long been India's largest software company only to be toppled recently from that position by Tata Consultancy Services. As the position of the CEO has moved from one founder to another it has had to grapple with a lot of internal restructuring under

Infosys Technologies (NYSE:INFY) took a beating on the bourses Thursday after the company reported lackluster earnings that missed its own forecast.

The stock ended down 11% for the day on NASDAQ as revenues for the quarter ended June 30 were down 1% on a sequential basis. What spooked the markets was continued muted guidance from the management which reset its forecast for year-on-year growth to 5% from the earlier expected 8-10%.

Q1-2012

Q4-2011

Revenues

1,752

1,771

Cost of sales

1,059

1,041

Gross profit margin

39.55

40.58

Net profit

416

463

Net profit margin

23.74

26.43

Diluted EPS

0.73

0.81

In US$ million, except per EPS.

Infosys has long been India's largest software company only to be toppled recently from that position by Tata Consultancy Services. As the position of the CEO has moved from one founder to another it has had to grapple with a lot of internal restructuring under

Complete Story »]]>
ACNCTSHWITINFYShrideep MurthyPatterson-UTI Energy: A Unique Play In Oil And Gas Drillinghttp://seekingalpha.com/article/713651-patterson-uti-energy-a-unique-play-in-oil-and-gas-drilling?source=feed_author_shrideep_murthy
713651Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is an land drilling rig contractor and is doing exactly the right things to profit from the increased drilling activity and hydraulic fracturing in the US. Patterson acquired certain assets of Key Energy Pressure Pumping Services LLC in October 2010 and this acquisition has quantitatively and qualitatively improved revenues from the pressure pumping segment.

The crash of 2008 took a huge toll on Patterson-UTI's operations. Revenues collapsed from $2 billion to $780 million and the company reported a net loss of $34 million in 2009. Recovery has been slow and the company crossed the 2008 water mark just last year.

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is an land drilling rig contractor and is doing exactly the right things to profit from the increased drilling activity and hydraulic fracturing in the US. Patterson acquired certain assets of Key Energy Pressure Pumping Services LLC in October 2010 and this acquisition has quantitatively and qualitatively improved revenues from the pressure pumping segment.

The crash of 2008 took a huge toll on Patterson-UTI's operations. Revenues collapsed from $2 billion to $780 million and the company reported a net loss of $34 million in 2009. Recovery has been slow and the company crossed the 2008 water mark just last year.